US stocks showing a significant rise
Stock prices soared during trading on Tuesday and regained ground following the sharp decline seen in the previous session. All major averages show a strong uptrend on the day.
In recent trading, the key average has reached a new high for the session. The Dow rose 427.44 points (1.3%) to 34,430.36, the Nasdaq rose 207.15 points (1.5%) to 14,462.63, and the S & P 500 rose 57.68 points (1.3%) to 4,358.14.
The rally on Wall Street comes when traders are aiming to pick up stocks at reduced levels, following the sold-out seen on Monday.
The technology-intensive Nasdaq ended yesterday’s session with the lowest closing price in more than three months, while the S & P 500 fell to a closing price of more than two months.
Concerns over inflation and the Federal Reserve curtailing asset purchases weighed heavily market With the increase in Treasury yields.
In addition to positive sentiment, the Institute for Supply Management released a report in September showing that activity in the US services sector grew at a slightly faster pace than expected.
According to ISM, the PMI of services rose from 61.7 in August to 61.9 in September, with numbers above 50 indicating growth in the services sector. Economists expected the index to drop to 60.0.
Anthony Nieves, Chairman of the ISM Services Business Investigation Commission, said:
“But ongoing challenges in labor, logistics and materials are affecting supply continuity,” he added.
Another report released by the Commerce Department showed that the US trade deficit widened far more than expected in August.
The Commerce Department said the trade deficit widened from the revised July 70.3 billion dollars to 73.3 billion dollars. Economists expected the trade deficit to increase from $ 70.1 billion, which was first reported last month, to $ 70.5 billion.
The trade deficit widened as imports increased 1.4% to $ 287 billion and exports increased 0.5% to $ 213.7 billion.
Benefiting from the continued rise in crude oil prices, energy stocks are performing best on the market today. Crude oil delivered in November has jumped from $ 1.53 a barrel to $ 79.15.
The Philadelphia Oil Services Index is up 2.4% and the NYSE Arca Oil Index is up 2.1%, reflecting the strength of the energy sector.
The NYSE Arca Broker / Dealer Index and KBW Bank Index are up 2.2% and 2%, respectively, showing significant strength in financial equities.
Transport, software and retail stocks also rose sharply on the day, with gold stocks retreating from the uptrend amid falling precious metal prices.
In overseas trading, the stock market in the Asia-Pacific region fell sharply on Tuesday. Japan’s Nikkei Stock Average fell 2.2%, while South Korea’s Kospi fell 1.9%.
In the bond market, government bonds fell sharply during the session. After that, the yield on the benchmark 10-year bond, which moves against the price, rose 5.2 basis points to 1.533 percent.
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